The move to digital in banking is an important trend. Analysts predict that banks that fail to transform themselves into a real digital business could lose a third of their revenues and miss out on 25% of cost savings. Lots of banks have been slow to transform their companies into truly digital businesses even though they know the competitive edge they can gain over traditionally run banks within their industry. Banks have developed new digital services, such as mobile apps, but they haven't implemented underlying digital changes within their business to create a unified front-to-back proposition. Analysts also say banks are wrong to raise security or risk concerns as a reason to take a slow approach - they base this on the fact that companies in other industries have had similar security or risk concerns but have made greater progress in using technology to imrove their businesses. For example, the airling industry has very strong risk concerns but has ben able to great boost customer service through digital transformation without compromising safety.
Additionally, millenials are increasingly turnng away from traditional banks and their traditional services. Banks that do not complete the digital shift risk becoming irrelevant in the future to a large segment of the population.
If a bank can fully transform itself into a digital organization then it can:
If banks do not successfully make a shift to digital then we could see a huge disruption in the banking industry where we see a shift to non-traditional financial service providers gaining a significant share of the financial services market that banks have traditionally had.
